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NewsDesk: Unsold MAG Assets Form 5ME

On July 29, Fives (Paris) completed the acquisition of MAG Americas (Erlanger, KY). With the acquisition, Fives became one of the global leaders in high-precision machine tools, used to manufacture large complex equipment and high-performance composite processing machines.

On that same day, a new company, 5ME, was formed out of the three business units that MAG Americas did not sell. They are part of a larger vision President Horwarth has for the new company to become an industry leader in providing total productivity and efficiency solutions to manufacturers of all sizes.

The three legs of the new 5ME business include:

Cryogenics. 5ME’s unique multipatented cryogenic machining process is a breakthrough technology that enables higher cutting speeds for increased material removal and longer tool life by transmitting liquid nitrogen at -321°F (-196°C) through the spindle/turret and tool body, direct to the cutting edge. The process promises a variety of environmental, production and cost benefits. The technology was instrumental in achieving cost-reduction goals for the F-35 Joint Strike Fighter.

Software Solutions for manufacturing and maintenance excellence. Freedom eWARE, a suite of software focused on manufacturing efficiency that integrates seamlessly into production and business systems, provides full transparency into manufacturing processes such as asset utilization, performance, quality, OEE, in addition to machine health, process health, and energy consumption.

With the sale of the MAG machinery units, 5ME services and products pledge to be “brand agnostic,” allowing solutions to be applied to all types of machinery and manufacturing systems. 5ME derives its name from the five critical “M” components it aims to address—man, material, machines, methods and metrics—to improve a manufacturing enterprise’s efficiency (the “E”).

Pete Tecos, 5ME’s Executive Vice President for Marketing and Product Strategy, said that the non-machinery part of MAG that was not sold to Fives was growing in strategic importance.

“Our side of the business was not as visible as MAG’s machinery business, but we are well known to leaders such as Caterpillar, Lockheed Martin and others,” Tecos said. “Our eLOG software, for example, has made Caterpillar’s manufacturing assets, and its production potential, completely transparent in real time to all levels of management, complete with performance metrics.”

The new 5ME company has management operations in Cincinnati, where it is headquartered, and Detroit. Detroit is also home to 5ME’s 40,000 ft2 (3716 m2) technology center, showcasing its breakthrough capabilities in cryogenic machining, tooling/fixturing, process development, asset monitoring and enterprise software, as well as embedded assistance.

US Manufacturing: Third Month of Expansion

Economic activity in the manufacturing sector expanded in August for the third consecutive month, and the overall economy grew for the 51st consecutive month, according to the Manufacturing ISM Report on Business.

The PMI registered 55.7% in August, an increase of 0.3 percentage points over July and the highest reading of the year, according to the Sept. 3 report from the Institute for Supply Management. Readings below 50 indicate contraction, while those above 50 indicate expansion.

Seven of the 10 indices that make up the PMI showed growth in August. Noteably, new orders gained 4.9 percentage points, to 63.2%, while prices gained 5 percentage points, to 54%. Also showing growth: production (62.4%), employment (53.3%), supplier deliveries (52.3%), exports (55.5%) and imports (58%).

Indices that showed contraction include inventories (47.5%), customers’ inventories (42.5%) and backlog of orders (46.5%). For comparison, the PMI registered 55.4% in July, 50.8% in June, 49% in May, 50.7%, in April, 51.3% in March, 54.2% in February and 53.1% in January.

Announcements

Boeing (Chicago) has selected ESAB Welding & Cutting Products (Florence, SC) as a partner in the manufacturing of fuel tank structures for NASA’s new heavy-lift rocket, the Space Launch System (SLS). The SLS will be the largest American rocket ever built and will measure 200' (61 m) taller than the entire space shuttle rocket assembly. The SLS will measure 384' (117 m) in total length, with a weight of 6.5-million pounds (2948 t). The construction of an assembly of this magnitude requires entirely new ways to fabricate, assemble, and weld the main fuel tank structures. Engineers and experts from ESAB have worked with Boeing and NASA for more than a year to develop the new Vertical Assembly Center (VAC), which is a giant orbital welding system that is capable of supporting the huge rocket fuel tank while circumferentially welding its sections together with the friction stir process. ESAB’s construction of the VAC will be the largest welding machine of its type in history, and is the most precise part of the assembly.

Okuma America Corp. (Charlotte, NC), a leader in CNC machine tool manufacturing, on Sept. 3 released a new app that displays scheduled maintenance and inspection reminders. Depending on the particular maintenance that needs to be performed, service recommendations can be displayed on a daily basis or intermittently throughout the life of the Okuma CNC machine tool directly on the CNC control without interrupting programming. The new app enhances productivity by helping to minimize unplanned service and downtime.

Daewoo Shipbuilding & Marine Engineering (DSME), a South Korean shipbuilder established in 1973 has awarded a more than $6.7-million order to Rockwell Automation (Milwaukee). Rockwell Automation will deliver fully integrated safety solutions for Transocean, a leading international provider of off-shore contract drilling services for energy companies, and an important DSME customer. Rockwell Automation will employ its large-project delivery management expertise to provide its PlantPAx Integrated Control Power and Safety Solution with the AADvance process safety system. The contract covers deliveries to four new Transocean drill ships, with options for six more ships. It follows a $6 million-plus order from DSME to Rockwell Automation for four new off-shore drill ships in 2011.

Mergers & Acquisitions

Granite State Mfg. (GSM; Manchester, NH), a leading contract manufacturer of specialized equipment for the defense, medical, semiconductor, and industrial market segments, has acquired the assets of Equipois Inc. (Los Angeles, CA), the developer of zeroG and X-Ar exoskeletal arm technologies. The acquisition is a strategic investment for GSM and will allow the company to use its precision manufacturing capabilities and robotics expertise to expand the capabilities and markets for Equipois products.

System One, a leading provider of specialized workforce solutions, on Sept. 3 announced the acquisition of Joule Inc. (Edison, NJ) and its subsidiaries, an established group of market-leading businesses operating under a single corporate umbrella. After the transaction, Joule’s extensive suite of professional and technical staffing solutions will operate as divisions of System One. The combined companies will generate annual revenues approaching $500 million, with more than 6000 employees and roughly 40 offices throughout the US. Additionally, System One is expected to become a top 5 US engineering staffing company and a top 10 US scientific staffing company. System One serves a broad group of large and middle-market companies in its respective sectors.

Events

WESTEC, the premier West Coast manufacturing event, will feature a series of additive manufacturing resources for manufacturers. This will include an Additive Manufacturing/3D Printing Resource Center, Additive Panel Discussion, and an Additive Manufacturing Certificate Program. Produced by SME, WESTEC 2013 will take place at the Los Angeles Convention Center, October 15–17, 2013.

SOUTH-TEC will be held Oct. 29–31 in Greenville, SC. The event draws manufacturing suppliers, distributors and equipment builders from across North America and around the world.

Workforce Development

Miller Electric Mfg. Co. (Appleton, WI) has donated more than $1 million in robotic welding equipment and simulation software to the Welding Engineering Technology program at Ferris State University (FSU) in Big Rapids, MI. The equipment includes three complete robotic welding cells that Miller and members of the program worked together to design modular bases for and install in the welding lab.

Awards

OMAX Corp. (Kent, WA), the global leader in the design, manufacture and support of advanced abrasive waterjet machines and accessories, on Sept. 9 reported that it has once again made Inc. Magazine’s 500|5000 list of fastest-growing private companies in America. The magazine develops this list annually to recognize and celebrate the success of growing companies, and this is OMAX’s third appearance on the esteemed list. OMAX ranked 134th as the fastest-growing privately held company in manufacturing.